Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Microsoft

(

MSFT

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Microsoft as such a stock due to the following factors:

  • MSFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.4 billion.
  • MSFT is down 3.3% today from today's close.

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More details on MSFT:

Microsoft Corporation develops, licenses, markets, and supports software, services, and devices worldwide. The company's Devices and Consumer (D&C) Licensing segment licenses Windows operating system and related software; Microsoft Office for consumers; and Windows Phone operating system. The stock currently has a dividend yield of 2.6%. MSFT has a PE ratio of 18.5. Currently there are 13 analysts that rate Microsoft a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Microsoft has been 29.3 million shares per day over the past 30 days. Microsoft has a market cap of $388.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.68 and a short float of 0.8% with 1.95 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Microsoft as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, MSFT's share price has jumped by 31.17%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 26.1%. Since the same quarter one year prior, revenues rose by 25.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Although MSFT's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. To add to this, MSFT has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $8,354.00 million or 1.81% when compared to the same quarter last year. Despite an increase in cash flow, MICROSOFT CORP's cash flow growth rate is still lower than the industry average growth rate of 11.90%.

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